NEWS FLASH: THE MAINSTREAM MEDIA is not your friend. Okay, maybe the subject of this Orlando Mortgage Blog Post is a little extreme, but it does prove my point. Sensational sells. Unfortunately, truth doesn’t always carry the same punch if it is not. Despite turmoil on Wall Street, despite the drum beat of doom from the media…the real estate sector continues to deliver good news.
Last month, led by a 22% surge from the West Region, new home sales went UP by 2.7% from August’s numbers. Okay, so the “West region” isn’t exactly Orlando Real Estate news, but the trend is important. Waiting for the bottom? You just might miss it if you don’t perk up and get pre-qualified now.
[A "new home" is a newly-built residence, i.e. a brand-new house.]
The surge in New Home Sales volume is aligned with the other good news we’ve seen from in the real estate market.
Lets count down the good news for real estate that you HAVEN’T HEARD in the last two weeks.
#4: Oct. 8: Homes under contract to sell jumps 7.4%
#3: Oct. 23: Foreclosed homes fall, yeah, you read it right FALL 12% in September
#2: Oct. 24: The supply of “used homes” falls to an 8-mo. low
#1: Oct. 27: The supply of new homes fell by 7%
WHY is this happening?
- Banks are getting better about selling foreclosed homes… we all saw that needed to change did we not?
- and builders are wising up and are dumping their excess inventory
This isn’t necessarily good for property values, but it does encourage what the Orlando realty market needs… buyer infusion. Deals are abounding in our Seminole and Orange County markets. In fact as I looked into it, almost 70% of the homes for sale right now qualify for an Orlando FHA Loan.
In addition, because our Lake Mary buyer-to-seller ratio still favors buyers, today’s home seekers… even First-time Home Buyers [Get your 21 FAQ of the $7500 Tax Credit here] enjoy a tremendous amount of negotiation leverage if they are aligned with a local Realtor, making real estate even more attractive.
But, as with everything in business, markets seek balance.
As home supplies dwindle, buyers’ ability to negotiate sales prices and closing costs will fall.
It’s Supply and Demand — as supplies drop, relative demand rises, and prices rise with it.
In every Seminole County neighborhood, homes that are priced “right” [usually because of Realtors not afraid to be candid with their sellers] are selling quickly. And now that banks and builders have figured out… or at least finding out the formula, more homes are going under contract than at any time since 2007.
Much of the current economic climate is being blamed on housing. If the data is accurate, though, we can infer that the climate may not last much longer.
Written by Chris Brown, Orlando Correspondent Lender.
(Image courtesy: AP.org)